FEES 5
Financial Ombudsman Service Funding
FEES 5.1
Application and Purpose
- 01/01/2006
Application
FEES 5.1.1
See Notes
This chapter applies to:
- (1) every firm which is subject to the Compulsory Jurisdiction and (apart from FEES 5.3, 5.4 and 5.8) every licensee which is subject to the Consumer Credit Jurisdiction of the Financial Ombudsman Service; and
- (2) every other person who is subject to the Compulsory Jurisdiction in relation to relevant complaints.
- 06/04/2007
FEES 5.1.2
See Notes
- 01/01/2006
FEES 5.1.3
See Notes
References in this chapter to "firms" are to be construed, where relevant, as including:
- (1) in accordance with the Ombudsman Transitional Order, unauthorised persons subject to the Compulsory Jurisdiction in relation to relevant complaints (see Transitional Provisions 6 and 7 of DISP); and
- (2) as a result of section 226 of the Act, unauthorised persons who were formerly firms in respect of complaints about acts or omissions which occurred at the time when they were firms, provided that the Compulsory Jurisdiction rules were in force in relation to the activity in question.
- 01/01/2006
FEES 5.1.3A
See Notes
- 06/04/2007
Exemption
FEES 5.1.4
See Notes
- 01/11/2007
FEES 5.1.4A
See Notes
- 01/11/2007
FEES 5.1.5
See Notes
- 01/01/2006
FEES 5.1.6
See Notes
- 01/01/2006
Purpose
FEES 5.1.7
See Notes
- 01/06/2009
FEES 5.1.8
See Notes
- 06/04/2007
FEES 5.2
Introduction
- 01/01/2006
FEES 5.2.1
See Notes
- 06/04/2007
FEES 5.2.2
See Notes
Section 234 of the Act (Industry Funding) enables the FSA to require the payment to it or to FOS Ltd, by firms or any class of firm, of specified amounts (or amounts calculated in a specified way) to cover the costs of:
- (1) the establishment of the Financial Ombudsman Service; and
- (2) its operation in relation to the Compulsory Jurisdiction.
- 06/04/2007
FEES 5.2.2A
See Notes
Section 234A (1) of the Act (Funding by consumer credit licensees etc.) enables FOS Ltd from time to time and with the approval of the FSA to determine a sum which is to be raised by way of contributions under that section to cover the costs of:
- (1) the establishment of the Financial Ombudsman Service so far as it relates to the Consumer Credit Jurisdiction;
- (2) its operation in relation to the Consumer Credit Jurisdiction; and
- (3) a component to cover the costs of collection of the contributions to that sum (collection costs).
- 06/04/2007
FEES 5.2.2B
See Notes
FOS Ltd must notify the Office of Fair Trading of every determination made under section 234A(1) and the Office of Fair Trading must give a general notice of every determination so notified. The Office of Fair Trading may by general notice impose requirements on
- (1) licensees under standard licences which cover to any extent the carrying on of a type of business specified in an order made under section 226A(2)(e) of the Act; or
- (2) persons who make applications for:
- (a) standard licences covering to any extent business of such a type; or
- (b) the renewal of standard licences on terms covering to any extent the carrying on of a business of such a type;
to pay contributions to the Office of Fair Trading for the purpose of raising sums determined by FOS Ltd in accordance with the provisions of section 234A (6) and (7) of the Act.
- 06/04/2007
FEES 5.2.3
See Notes
- 01/01/2006
FEES 5.2.3A
See Notes
- 06/04/2007
FEES 5.2.4
See Notes
- 01/01/2006
FEES 5.2.5
See Notes
- 01/01/2006
FEES 5.2.6
See Notes
- 01/01/2006
FEES 5.2.7
See Notes
- 01/01/2006
FEES 5.3
The general levy
- 01/01/2006
FEES 5.3.1
See Notes
Each financial year, the FSA and FOS Ltd will consult on the amount of the annual budget of the Financial Ombudsman Service which is to be raised by the general levy.
- 01/01/2006
FEES 5.3.2
See Notes
- 01/01/2006
FEES 5.3.3
See Notes
- 01/01/2006
FEES 5.3.4
See Notes
- 01/01/2006
FEES 5.3.5
See Notes
- 01/01/2006
FEES 5.3.6
See Notes
- 01/01/2006
FEES 5.3.7
See Notes
- 01/01/2006
FEES 5.3.8
See Notes
A firm's general levy is calculated as follows:
- (1) identify each of the tariff bases set out in Part 2 of FEES 5 Annex 1 which apply to the relevant business of the firm for the relevant year;
- (2) for each of those tariff bases, calculate the sum payable in relation to the relevant business of the firm for that year;
- (3) add together the amounts calculated under (2).
- 01/01/2006
FEES 5.3.9
See Notes
- 01/01/2006
FEES 5.3.10
See Notes
- 01/01/2006
FEES 5.4
Information requirement
- 01/01/2006
FEES 5.4.1
See Notes
- (1) A firm must provide the FSA by the end of February each year (or, if the firm has become subject to the Financial Ombudsman Service part way through the financial year, by the date requested by the FSA) with a statement of the total amount of relevant business (measured in accordance with the appropriate tariff base(s)) which it conducted, as at or in the year to 31 December of the previous year as appropriate, in relation to the tariff base for each of the relevant industry blocks set out in part 2 of FEES 5 Annex 1.
- (2) Paragraph (1) does not apply if the firm pays a general levy on a flat fee basis only.
- (3) If a firm cannot provide a statement of the total amount of relevant business as required by FEES 5.4.1 R, it must provide the best estimate of the amount of relevant business that it conducted.
- (4) For the purpose of FEES 5.4.1 R, references to relevant business for a firm which falls in industry block 16 or 17 and which so elects under part 2 of FEES 5 Annex 1, are references to the firm's total amount of annual income reported in accordance with Part 2 of FEES 4 Annex 1.
- (5) If a firm does not submit a complete statement by the date on which it is due in accordance with this rule and any prescribed submission procedures:
- (a) the firm must pay an administrative fee of 250 (but not if it is already subject to an administrative fee under FEES 4 Annex 2, Part 1 or FEES 6.5.16 R for the same financial year); and
- (b) the general levy will be calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10 (or, if a firm has become subject to the Financial Ombudsman Service part way through the financial year, on the basis of the information provided to the FSA for the purposes of FEES 4.4.2 R) or on any other reasonable basis, making such adjustments as seem appropriate in subsequent levies once the true figures are known.
- 01/06/2009
FEES 5.4.2
See Notes
- 28/08/2007
FEES 5.4.3
See Notes
- 01/01/2006
FEES 5.4.4
See Notes
- 06/04/2008
FEES 5.5
Case fees
- 01/01/2006
Standard case fee
FEES 5.5.1
See Notes
- 06/04/2007
FEES 5.5.2
See Notes
- 01/01/2006
FEES 5.5.2A
See Notes
- 06/04/2007
FEES 5.5.3
See Notes
- 01/01/2006
FEES 5.5.4
See Notes
- 01/01/2006
FEES 5.5.5
See Notes
- 01/01/2006
Special case fees: complaints from small businesses
FEES 5.5.6
See Notes
- 06/04/2008
Special case fees: firms which cease to be authorised and persons which cease to be licensees
FEES 5.5.7
See Notes
- 01/01/2006
FEES 5.5.7A
See Notes
- 06/04/2007
Special case fees: relevant complaints against persons who were subject to a former scheme
FEES 5.5.8
See Notes
- 01/01/2006
FEES 5.5.9
See Notes
- 01/01/2006
Special case fees for 2001/02
FEES 5.5.10
See Notes
- 01/01/2006
FEES 5.5.11
See Notes
- 01/01/2006
FEES 5.5.12
See Notes
- 01/01/2006
FEES 5.5.13
See Notes
- 01/01/2006
FEES 5.5.14
See Notes
- 01/01/2006
Case fee exemption
FEES 5.5.15
See Notes
- 01/04/2008
FEES 5.5.16
See Notes
- 06/07/2006
FEES 5.6
The supplementary levy
- 01/01/2006
FEES 5.7
Payment
- 01/01/2006
FEES 5.7.1
See Notes
- 01/06/2009
FEES 5.7.2
See Notes
- 06/04/2007
FEES 5.7.3
See Notes
- 01/01/2006
FEES 5.7.4
See Notes
- 01/01/2006
FEES 5.8
Joining the Financial Ombudsman Service
- 01/01/2006
FEES 5.8.1
See Notes
- 01/06/2009
FEES 5.8.2
See Notes
- 01/06/2009
Application of FEES 5.8.2R
FEES 5.8.3
See Notes
References in this table to dates or months are references to the latest one occurring before the start of the FSA's financial year unless otherwise stated.
Type of permission acquired on 1 November | Tariff base | Valuation date but for FEES 5.8.2R | Data period under FEES 5.8.2R |
Insurers - general | Relevant annual gross premium income | 31 March 2009 - so projected valuations will be used | 1 November to 31 December 2009. |
Fund managers (including those holding client money/assets and not holding client money/assets | Relevant funds under management | Valued at 31 December | Valued at 31 December |
Advisory arrangers, dealers or brokers holding and controlling client money and/or assets | Number of relevant persons approved to perform the customer function with certain exclusions | Relevant approved persons as at 31 December | Relevant approved persons as at 31 December |
- 01/04/2009
FEES 5.9
Leaving the Financial Ombudsman Service
- 01/01/2006
FEES 5.9.1
See Notes
- 01/01/2006
FEES 5.9.1A
See Notes
- 06/04/2007
FEES 5.9.2
See Notes
- 01/06/2009
FEES 5.9.3
See Notes
- 06/04/2007
FEES 5 Annex 1
Annual Fees Payable in Relation to 2009/10
- 01/04/2009
See Notes
1. The annual budget for 2009/10 approved by the FSA is 92.5m.
Part 1: General levy
2. The total amount expected to be raised through the general levy in 2009/10 will be £17.7m (net of £1.8m to be raised from consumer credit firms).
Part 2: Fee tariffs for general levy
Industry block | Tariff base | General levy payable by firm |
1-Deposit acceptors, home finance providers, home finance administrators (excluding firms in block 14) and dormant account fund operators | Number of accounts relevant to the activities in DISP 2.6.1 R as at 31 December For an e-money firm, the tariff base includes the number of e-money accounts multiplied by 0.15. (7) In the case of dormant account fund operators, the tariff base is the number of eligible activated accounts (8). |
0.027 per relevant account, subject to a minimum levy of 100 |
2-Insurers - general (excluding firms in blocks 13 & 15) | Relevant annual gross premium income | 0.126 per 1,000 of relevant annual gross premium income, subject to a minimum levy of 100 |
3-The Society (of Lloyd's) | Not applicable | 28,000 to be allocated by the Society |
4-Insurers - life (excluding firms in block 15) | Relevant adjusted annual gross premium income | 0.028 per 1,000 of relevant adjusted annual gross premium income, subject to a minimum levy of 100 |
5-Fund managers (including those holding client money/assets and not holding client money/assets) | Flat fee | Levy of 200 |
6-Operators, trustees and depositaries of collective investment schemes and operators of personal pension schemes or stakeholder pension schemes | Flat fee | Levy of 50 |
7-Dealers as principal | Flat fee | Levy of 50 |
8-Advisory arrangers, dealers or brokers holding and controlling client money and/or assets | Number of relevant persons approved to perform the customer function (CF30), but excluding those persons solely acting in the capacity of an investment manager or solely advising clients in connection with corporate finance business or performing functions relating to these. | 45 per relevant approved person subject to a minimum levy of 45 |
9-Advisory arrangers, dealers or brokers not holding and controlling client money and/or assets | Number of relevant persons approved to perform the customer function (CF30), but excluding those persons solely acting in the capacity of an investment manager or solely advising clients in connection with corporate finance business or performing functions relating to these. | 40 per relevant approved person subject to a minimum levy of 40 |
10-Corporate finance advisers | Flat fee | Levy of 50 |
11- | N/A for 2008/09 | |
12- | N/A for 2009/10 | |
13-Cash plan health providers | Flat fee | Levy of 50 |
14-Credit unions | Flat fee | Levy of 50 |
15-Friendly societies whose tax-exempt business represents 95% or more of their total relevant business | Flat fee | Levy of 50 |
16- Home finance providers, advisers and arrangers (excluding firms in blocks 13, 14 & 15) | Flat fee | Levy of 70 |
17 - General insurance mediation (excluding firms in blocks 13, 14 & 15) | Annual income (as defined in MIPRU 4.3) relating to firm's relevant business | 0.175 per 1,000 of annual income (as defined in MIPRU 4.3) relating to firm's relevant business subject to a minimum levy of 80 |
4 | [not used] |
5 | The industry blocks in the table are based on the equivalent activity groups set out in Part 1 of FEES 4 Annex 1. |
6 | Where the tariff base in the table is defined in similar terms as that for the equivalent activity group in Part 2 of FEES 4 Annex 1, it must be calculated in the same way as that tariff base - taking into account only the firm's relevant business. |
7 | (1) An e-money account is, subject to (2), e-money that has been issued by an e-money firm and which can reasonably be regarded as being held by the owner of the e-money as a single balance and under the same arrangements. (2) An account that would be an e-money account under (1) will not be one where, as at 31 December, it carries a nil balance and/or has been inactive for a period of 12 months or more. |
8 | Eligible activated accounts are the number of repayment claims met by the dormant account fund operator as at the 31 December. |
Table: Standard case fees and special case fees
Compulsory jurisdiction - case fee table | ||
case fee | ||
standard case fee | 500 | (for the fourth chargeable case and any subsequent chargeable case in this financial year 2009/10) |
special case fee | 500 | (for the fourth chargeable case and any subsequent chargeable case in this financial year 2009/10) |
The definitions of standard case fee and special case fee are in FEES 5.5, (case fees) in the FSA Handbook. | ||
The definition of a chargeable case is in the Glossary to the FSA Handbook |
Table: Consumer credit jurisdiction - standard case fee
Consumer credit jurisdiction - case fee table | ||
case fee | ||
standard case fee | 500 | (for the fourth chargeable case and any subsequent chargeable case in this financial year 2009/10) |
special case fee | 500 | (for the fourth chargeable case and any subsequent chargeable case in this financial year 2009/10) |
The definitions of standard case fee and special case fee are in FEES 5.5, (case fees) in the FSA Handbook. | ||
The definition of a chargeable case is in the Glossary to the FSA Handbook |
Part 4: VJ participants
Table: Fee tariffs and case fees for VJ participants
Voluntary jurisdiction - general levy tariff and case fee table | |||||
industry block and business activity | tariff basis | tariff rate | minimum levy | case fee (Note 1) | |
1V | deposit acceptors, mortgage lenders and administrators, including debit/credit/charge card issuers and electronic money institutions | number of relevant accounts, adjusted in respect of e-money accounts on the same basis as for industry block 1 in Part 2 of FEES 5 Annex 1 R (Note 2) |
0.027 | 100 | 500 |
2V | VJ participants undertaking insurance activities subject only to prudential regulation | per 1,000 of relevant annual gross premium income | 0.126 | 100 | 500 |
3V | VJ participants undertaking insurance activities subject to prudential and conduct of business regulation | Per 1,000 of relevant adjusted annual gross premium income | 0.025 | 100 | 500 |
6V | intermediaries | n/a | n/a | 75 | 500 |
7V | Freight-forwarding companies | n/a | n/a | 75 | 500 |
8V | National Savings & Investments | n/a | n/a | 10,000 | 500 |
9V | Post Office Limited | n/a | n/a | 10,000 | 500 |
10V | Persons not covered by 1V to 9V undertaking activities which would be regulated activities or consumer credit activities if they were carried on from an establishment in the United Kingdom | n/a | n/a | 75 | 500 |
Notes *note on case fees: (1) The standard case fee and the special case fee are both 500. As for the compulsory jurisdiction, VJ participants will only be charged for the fourth and subsequent chargeable case in this financial year 2009/10. note on relevant accounts: (2) The FSA's consultation paper CP08/18 (chapter 7) contains a proposal to amend the definition of relevant accounts in relation to e-money accounts. (www.fsa.gov.uk/pubs/cp/cp08_18.pdf) |
- 06/08/2009